Hi Sreekanth,
I have a query related to section 80ccd(1) present on the return form. I am a bank employee and my pf deductions goes into NPS (mandatory for us). As per the salary slip, my monthly contribution is around 4000 (yearly - 48000) and employer also contributes to the same amount. Apart from that, i have invested 1.5 lakhs in PPF last year. Can you advise me if i can claim following deductions:
Section 80C - 1.5 Lakhs (that i invested in ppf account)
Section 80CCD(1B) - 48000 (employee contribution)
Section 80CCD(2) - 48000 (employer contribution)
Or i have to show the entire amount (ppf+employee contribution towards nps) under section 80C. Please advise.
3 Answers
Hi,
There are mixed and conflicting opinions on how to claim tax deductions of NPS contributions under different sub-sections.
There is no clarity on this topic.
I believe that as long as there is no duplication of tax deductions (claiming twice) you can claim;
Rs 1.5 Lakh PPF u/s 80c.
Rs 48k u/s 80CCD(1b) &
Employer contribution (max 10% of basic salary) u/s 80CCD(2).
Thanks Sreekanth for the quick response. One added query please. As per your post, one can claim max 10% under 80CCD(2). As per my understanding, this 10% is of basic+DA. I have yearly basic salary of 330000 and DA is around 1.5 lakhs. Please advise if i can claim 10% of 330000+150000 or 10% of 330000
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